Strong Neighborhoods Menasha · Major Renovation Program The Major Renovation Program will help eligible homes increase their value and assist with needed upgrades. The program provides

2020

Strong Neighborhoods Menasha A Housing Renovation Initiative

Joe Stephenson Associate Planner City of Menasha 100 Main Street Menasha, WI 54952

1 | P a g e INTRODUCTION

CONTENTS

HOUSING RENOVATION INITIATIVE ....................................................................................................2

Overview .......................................................................................................................................2

Goals and Objectives ......................................................................................................................2

Administration ...............................................................................................................................2

Program Summary .........................................................................................................................3

PROGRAM DETAILS ............................................................................................................................4

Paint and Restore Program .............................................................................................................4

Curb Appeal Program .....................................................................................................................5

Major Renovation Program ............................................................................................................6

First Time Homebuyer ....................................................................................................................7

Property Acquisition .......................................................................................................................8

ADDITIONAL PROGRAM DETAILS ...................................................................................................... 10

Income Requirements……………………………………………………………………………………………………………………10

Housing Requirements…………………………………………………………………………………………………………………..10

Ineligible Properties ..................................................................................................................... 10

Eligible Projects ............................................................................................................................ 10

Labor ........................................................................................................................................... 11

Application Process ...................................................................................................................... 11

Housing Authority Approval………………………………………………………………………………………………………….11

Program Amendments ……..………………………………………………………………………………………………………….12

Marketing Funds…………………………………………………………………………………………………………………………..12

APPENDIX A ..................................................................................................................................... 13

APPENDIX B ..................................................................................................................................... 15


INTRODUCTION

Overview

Strong Neighborhoods Menasha is an initiative developed by the City of Menasha to help increase the

attractiveness and affordability of Menasha’s housing stock. Strong Neighborhoods aims to work with

citizens to invest in both them and their homes. Currently the City runs a Community Development

Block Grant (CDBG) program and a Paint and Restore Program. The Strong Neighborhoods Initiative will

combine these programs along with four new programs, Curb Appeal, Major Renovation, First Time

Homebuyer, and Property Acquisition. The new programs will be financed through a TIF financing law

known as the “Affordable Housing Extension” that allows the extension of a TIF to benefit a

municipalities housing stock. Funds for these programs will be available in the form of grants and loans.

Investing in the city’s housing stock will result in a ripple effect that will benefit everyone within the City.

Goals and Objectives

Strong Neighborhoods Menasha is aimed at updated the City’s residential homes. Two main goals have

been proposed; with a number of objectives to help us define what success looks like. These goals are

based upon the findings in Appendix (A).

Goal One: Increase the quality of Menasha’s housing stock.

1. Increase median property values within the city from $118,400 to $120,000 by 2025

2. See a downward trend in property survey violations.

Goal Two: Increase home ownership stability.

1. Return an average of two historically single family homes, that were converted to multi-family

homes, back to single family homes per year by 2025.

2. Decrease the number of home changes per year.

3. Increase the percentage of students who start in Menasha School District and graduate from

Menasha School District by 5% by 2025.

Administration

The Community Development Department will administer the Strong Neighborhoods Initiative.

Administration includes, but is not limited to, promoting and advertising the program, accepting and

reviewing completed applications, interpreting program guidelines, approving or disapproving property

acquisitions, and reviewing reimbursement requests.

Any grant funds that were allocated but not used in full by an approved applicant and/or any unused

funds within the calendar year will either be reprogramed to another grant application with an eligible

project(s) or will be carried over to the next calendar year's budget.

Approving or disapproving applicants, loans, and grants for Curb Appeal and Major Renovation will be

done on a quarterly basis. Qualified projects will be approved on a first come first serve basis. The


Menasha Housing Authority will have final determination on amount and who receives funds from the

Curb Appeal and Major Renovation programs.

The budget for the program will be set on an annual basis and be included in the City of Menasha’s

Operating Budget.

Program Summary

The Housing Initiative’s wide range of programs intend to rebuild the City’s aging housing stock and

increase home ownership and stability. The following is a list of programs administered through this

initiative:

1. Paint and Restore: Minor program to assist in the repair and replacement of various exterior

housing improvements. Administered by Community Development Department.

a. Up to $1,000 Grant.

b. 100% match for owner occupied – 200% match for non-owner occupied.

2. Curb Appeal: Major program to assist in the repair and replacement of various exterior housing

improvements. Administered by Community Development Department and Housing Authority

a. Up to $5,000 Grant – minimum $5,000 project.

b. 100% match for owner occupied – 200% match for non-owner occupied.

3. Major Renovation: Program designating funds for large exterior and interior home

improvement projects. Administered by the Community Development Department and the

Housing Authority.

a. Up to $15,000 Forgivable Loan – minimum $15,000 project.

b. 50% match for owner occupied homes.

c. Optional additional $15,000 for conversions from historically single family homes back

to a single unit.

4. First Time Homebuyer: A down payment assistance program for first time home buyers.

Administered by the Community Development Department.

a. Up to $5,000 forgivable loan.

5. Property Acquisition: Program designated to assist the City in the acquisition, demolition, or

rehabilitation of blighted properties. Administered by the Community Development Department

and the Common Council.

Other programs offered by the City of Menasha include the following:

1. Community Development Block Grant (CDBG): Low to Moderate Income (LMI) restricted

program to assist in the Repair and replacement of roofs, doors, windows, plumbing, electrical,

HVAC, siding, accessibility. Administered by Housing Specialist.

a. Deferred loan due at the time of sale

2. Lead Lateral Replacement: Program designed to assist property owners in replacement of lead

laterals servicing the home. Administered by Menasha Utilities.

a. Up to $2,000 Grant

b. 33% match from property owner

INTRODUCTION

4 | P a g e PROGRAM DETAILS

PROGRAM DETAILS

Paint and Restore Program

The paint and restore program is a grant program to help eligible single and two-family homes increase

the curb appeal of their home. The program is a matching grant program and will provide funds of up to

$1,000 for eligible expenses.

A. Eligible Properties: Properties that meet the following criteria may apply for up to $1,000, 100%

matching for owner occupied and 200% for non-owner-occupied units:

a. Single Family or Two-Family Residence use properties.

b. Property owner or tenant cannot spend more than 30% of their gross monthly

household income on housing related expenses.

B. Ineligible Properties: See Additional Program Details

C. Eligible Projects: See Additional Program Details

D. Grant Guidelines:

a. The applicant must submit a completed application packet, including before photos,

prior to any work being completed in order to be considered for a Grant Program.

b. A project timeline must be submitted to the Community Development Department.

c. This program is a reimbursement grant. The applicant is required to pay all expenses

related to their approved project and then submit for reimbursement from the City.

d. Must provide 100% matching funds if owner occupied and 200% is non-owner occupied.

e. The homeowner must agree to obtain all necessary permits (e.g. building, plumbing,

electrical, roofing, permits, etc.).

f. All work must meet local, state and national standards including but not limited to lead

and asbestos.

g. For painting or staining projects applicants are required to scrape and prime all surfaces

prior to painting or staining. Photo documentation of the finished prep work is required.

h. Up to 10% of the total project grant reimbursement can be for trees and shrubs planted

in the front yard.

i. Projects must be substantially completed within six (6) months of loan approval.

E. Ineligible Grant Expenditures: Items/projects that are not eligible for reimbursement under the

Grant Program include, but are not limited to, the following:

a. The repair or replacement of dog houses or any other structure for animals.

b. Any interior projects to the primary building, detached garage, or accessory building.

c. Rental companies or other organizations may not use this program to reimburse their

own staff’s labor expenses to complete their project.

Home Type Total Project Amount City Grant Private Match

Owner Occupied $2,000 $1,000 $1,000

Non-owner Occupied $3,000 $1,000 $2,000

Owner Occupied $1,500 $750 $750

Non-owner Occupied $1,500 $500 $1,000

PROGRAM


d. Materials that have been purchased or projects that are completed or underway prior

to issuance of a signed Contract for Services and Grant Award Letter by Community

Development Staff.

e. The purchasing of permanent equipment or tools (ladder, paint sprayers, etc.) is not an

eligible expense.

F. Reimbursement Procedures:

a. A completed Final Reimbursement Form/Worksheet. This form must include a

description of the proposed project(s) and the final cost for each project. Any items for

projects not listed on the Pre-Documentation Form are not considered for

reimbursement.

b. Copies of receipts/paid invoices showing proof of purchase of the approved/ completed

items/materials for each project. The applicant is required to mark on their receipt

which item(s) is/are being requested for reimbursement and what project they were for.

c. Final photo documentation of the complete project. (“After” Photos). Photos shall be

taken in a similar manner to the “Before” photos.

d. After the applicants submit all of the required information for reimbursement, the

Community Development Department shall review all information submitted to ensure

it is eligible for reimbursement and will determine the amount awarded, if any, to the

applicant.

e. Once the request is complete, copies are made of the reimbursement form and all

receipts and/or paid invoices are forwarded to the City of Menasha’s Finance

Department and the dollar amount to be reimbursed back to the applicant.

Curb Appeal Program

The curb appeal program is a grant program to help eligible single and two-family homes increase the

curb appeal of their home. The program is a matching grant program and will provide funds of up to

$5,000 for eligible expenses.

A. Eligible Properties: Properties that meet the following criteria may apply for up to $5,000 grant,

100% matching for owner occupied and 200% for non-owner-occupied units:

a. Single Family or Two-Family Residence use properties.

b. Property owner or tenant cannot spend more than 30% of their gross monthly

household income on housing related expenses.

c. Minimum project value of $5,000.

Home Type Total Project Amount

City Grant Private Match Eligible Landscape Expenses

Owner Occupied $5,000 $2,500 $2,500 $250

Non-owner $5,000 $1,667 $3,333 $167.70

Owner $15,000 $5,000 $10,000 $500

Non-owner $15,000 $5,000 $10,000 $500

PROGRAM




D. Grant Guidelines: See Grant Guidelines under Paint and Restore

E. Ineligible Grant Expenditures: See Ineligible Grant Expenditures under Paint and Restore

F. Reimbursement Procedures: See Reimbursement Procedures under Paint and Restore

Major Renovation Program

The Major Renovation Program will help eligible homes increase their value and assist with needed

upgrades. The program provides 200% matching funds in the form of a forgivable loan of up to $15,000.

Any project that reduces the number of units to one (1) is eligible for an additional $15,000 of funding.

The forgivable loans will act as a deferred second mortgage with no principal or payments due until the

sale of the house. If the applicant lives in the home for five (5) consecutive years the entire loan is

forgiven.

A. Eligible Properties: Properties that meet the following criteria may apply for the Major

Renovation Program:

a. Single Family or Two-Family Residence use properties

b. Homes that are or will be owner occupied within one (1) year of loan distribution.

c. Property owner cannot spend more than 30% of their gross monthly household income

on housing related expenses.

d. Minimum project value of $15,000.



D. Loan Guidelines:

a. The applicant must submit a completed application packet, including before photos,

prior to any work being completed in order to be considered for a Major Renovation

Program loan.

b. A project timeline must be submitted to the Community Development Department.

c. Loans will consist of a 0% interest over the life of the loan, and act as a deferred second

mortgage. After five consecutive years of living in the home that received the loan

funds, the loan will be 100% forgiven.

d. If the property owner sells before the five year time period or is no longer the primary

place of residence, the loan is required to be paid back in full.

Total Project Amount Conversion of Single Family City Loan Private Match

$15,000 NO $10,000 $5,000

$45,000 YES $30,000 $15,000

$30,000 YES $20,000 $10,000

$22,500 NO $15,000 $7,500


e. Properties may receive a loan, not to exceed $15,000 for home improvements and

$30,000 for home improvements that reduce the number of livable units to one (1) on

an existing multi-unit property.

f. The homeowner must agree to obtain all necessary permits (e.g. building, plumbing,

electrical, roofing, permits, etc.).

g. All work must meet local, state and national standards including but not limited to lead

and asbestos.

h. The loan can be transferred to a new owner one (1) time over the life of the loan and

must be transferred within one (1) year of loan distribution. If an individual does not use

the home as their primary residence after the one (1) year period the loan is required to

be paid back in full.

i. Projects must be substantially completed within six (6) months of loan approval.

G. Ineligible Loan Expenditures: Items/projects that are not eligible for reimbursement under the

Program include, but are not limited to, the following:

a. The repair or replacement of dog houses or any other structure for animals.

b. Any interior projects to the detached garage or accessory building.

c. Rental companies or other organizations may not use this program to reimburse their

own staff’s labor expenses to complete their project.

d. Materials that have been purchased or projects that are completed or underway prior

to issuance of a signed Contract for Services and Award Letter by Community

Development Staff.

e. The purchasing of permanent equipment or tools (ladder, paint sprayers, etc.) is not an

eligible expense.

f. Proposed projects that are solely demolition.

g. Project costs that demolish a structure or part of a structure and do not replace the

structure in kind to protect the character of the home and neighborhood.

First Time Homebuyer

First Time Homebuyer program is an incentive that provides first time homebuyers with down payment

assistance. The incentive will be provided in the form of a forgivable loan of up to $5,000. The loan will

accrue no interest and after five (5) consecutive years of living in the home the loan will be 100%

forgiven.

A. Eligible Properties:

a. Owner occupied homes.

b. Individuals purchasing their first home.

c. Property owner cannot spend more than 30% of their gross monthly household income

on housing related expenses.

d. Single Family properties.


C. Loan Guidelines:


a. The applicant must submit a completed application packet.

b. Loans will consist of a 0% interest over the life of the loan, and act as a deferred second

mortgage. After five consecutive years of living in the home that received the loan

funds, the loan will be 100% forgiven.

c. The individual who received the loan must use the property as their primary place of

residency.

d. If the property owner sells before the five year time period or is no longer the primary

place of residence, the loan is required to be paid back in full.

e. The loan can be paid in full or in part at any time before the sale of the home.

f. Properties may receive a loan, not to exceed $5,000.

g. Individuals employed by the City of Menasha that choose to relocate within the City’s

Municipal boundaries qualify for the first time homebuyer program regardless of if the

home they are purchasing is their first home or not. Any home purchased in this manner

must be an existing single family home.

Property Acquisition

The Property Acquisition Program is a tool the City of Menasha can use to help remove blighted

properties within the city. The intent of the property acquisition program is to acquire strategically

located or blighted properties. The acquired properties would then be demolished or sold to a qualified

contractor that would work with the City of Menasha to rehabilitate the property. All costs associated

with acquiring the property and rehabilitating the site is eligible under this program.

A. Eligible Properties: Properties deemed eligible by the Community Development Director shall

be presented to the Menasha Common Council. It is the discretion of the Menasha Common

Council on which properties to acquire. Properties that meet the following criteria may be

considered by the Menasha Common Council for acquisition through the Property Acquisition

Policy:

a. Any properties that is blighted or in disrepair.

b. Properties that present an economic benefit to acquire.

c. Properties, that when acquired, will further the goals of the City of Menasha

Comprehensive Plan.

d. Properties, that when acquired, will further the goals of the City of Menasha Downtown

Vision Plan.

e. Properties that have an active raze order.

f. Any property that will benefit the City of Menasha’s housing stock.

B. Eligible Expenditures:

a. Property acquisition.

b. Demolishing/razing costs.

c. Costs associated with the sale of a property.

d. Costs associated with the maintenance of a property.

e. Utility costs.


f. Any costs associated with ensuring the house are not a health or sanitation risk,

including but not limited to: asbestos removal, well abatement, removal of hazardous

material, and lead removal.

g. Safety costs.

h. Bringing non-compliant features up to code.

10 | P a g e ADDITIONAL PROGRAM DETAILS

ADDITIONAL PROGRAM DETAILS

Income Requirements

No loan or grant shall be given to an individual who does not meet the state requirement of affordable

housing as defined in section 66.1105(2) (ab). No more than 30% of the household’s gross monthly

income can be spent on housing related expenses. Housing related expenses include: mortgages,

property taxes and home insurance. ($5,000 Gross Monthly Household Income = $1,500 maximum

amount spent on housing costs)

Housing Standards

In order to maintain the historic character and quality of Menasha’s older homes, all houses that use

program funds must abide by the guidelines set forth in Appendix (B).

Ineligible Properties

A property which has any one or more of the following conditions is ineligible for the rehabilitation

program:

A. A property is not located within the corporate limits of the City of Menasha.

B. Any property where the owner of that property is delinquent on any debt it owes to the City of

Menasha.

C. Properties owned in part or in whole by a tax exempt entity.

D. A property that has an open or issued Correction Notice. Applications that are submitted for

projects will close a Correction Notice may be considered on a case by case basis.

E. Property that has received past housing funds, excluding the Community Development Block

Grant Program, in the previous 5 years or has a Major Housing Renovation Loan open with the

City of Menasha.

Eligible Projects

Eligible items for include, but are not limited to, the following:

A. Bringing non-compliance features up to code.

B. Replacing the roof.

C. Repair/Replacing windows.

D. Exterior masonry repair/replace.

E. Front porch repair.

F. Replace/ repair existing siding.

G. Install guards and handrails.

H. Paving of driveway.

I. Replace, repair, or install garage.

J. Demolition and removal of structures deemed dilapidated by the City Building Inspector as part

of a larger project.


K. Repair, replacement, or installation of fences.

L. Repair or replacement of gutters or trim.

M. Repair or replacement of soffit and fascia.

N. Lead and asbestos remediation.

O. Shrubs and Trees within the front yard (not to exceed 10% of total project reimbursement).

P. Other projects may be eligible for reimbursement upon approval of the Community

Development Director.

Q. Additions or added architectural features that will enhance the character of the home.

R. Additional Projects Permitted for Major Renovation:

a. Foundation repair.

b. Interior Remodel

c. Upgrading electrical.

d. Upgrading plumbing.

e. Upgrading mechanical systems.

Labor

Only professional labor can be claimed for reimbursement. Professional labor is considered work done

by an individual who is trained and engaged in such work for a career. All work must meet the housing

standards set forth in Appendix (B).

Application Process

The Community Development Department shall ensure a complete application is submitted and then

will process them.

A. Administration and Approval:

a. Paint and Restore – Community Development Department review and approval

b. Curb Appeal – Community Development Department review and Housing Authority

Approval on a quarterly basis

c. Major Renovation – Community Development Department review and Housing

Authority Approval on a quarterly basis

d. First Time Homebuyer – Community Development Department review and approval

B. A complete Pre-Documentation project Form. For renovation projects, this Form must include

an itemized description of the proposed project and an estimated cost for each item. Any item

not listed on the worksheet will not be considered for reimbursement or a loan. If the project is

being completed by a contractor, a copy of their estimate to complete the work must be

attached.

C. Submit a timeline outlining when the project will be completed.

D. A completed W-9 Form. A completed W-9 form must be completed and submitted in order to

be eligible for the program.

E. The Community Development Department determines whether the applicant owes money to

the City and if there are any Correction Notices on the property.


F. It is anticipated that an applicant will receive a response whether they are eligible or ineligible

for the Program within 30 days from the date received.

G. Before photos of the proposed project. Items will not be considered if before photos are not

submitted.

H. A signed Contract for Services Form. Submit a signed Contract for Services Form. If approved, a

signed copy of the Contract from the City will be sent back to the applicant.

I. Additional Requirements for Loan Programs:

a. Three (3) recent consecutive months of paycheck stubs.

b. Last one (1) year full tax return (federal) and W2s and 1099s.

c. Recent 6 months checking/savings statements and recent retirement/financial asset

statements.

d. Most recent mortgage loan statement (if any) and homeowner’s insurance policy

coverage page. Along with a statement of all current debt.

Housing Authority Approval

The Housing Authority on a quarterly basis shall review and approve all applications for the Curb Appeal

and Major Renovation Programs. The Community Development Department will make a

recommendation to the Housing Authority on all projects. The recommendation will be considered by

the Housing Authority for approval or denial of the project. The following criteria will be taken into

consideration by the Community Development Department and the Housing Authority:

The applicant’s financial history.

History of the applicant and/or listed contractors including past ordinance violations and/or

citations.

The quality of work performed by the applicant in any other applicable home renovation.

The Project quality.

The neighborhood impact of the project.

Program Amendments

Any update clarifying the intent of the document and/or process that does not drastically change the

program details or the programs intent may be made by the Community Development Department.

Those changes that would alter the programs intent, drastically change the review and approval process,

or alter a funding amount shall require consent of the Common Council.

Marketing Funds

It is the expressed intent of this initiative that up to $1,500 shall be budgeted per calendar year to

market and advertise the initiative. The Community Development Department will determine how best

to use the budgeted marketing funds to promote the initiative.

13 | P a g e APPENDIX A

APPENDIX A

A person’s home is their largest asset and thus the City’s housing stock is its largest asset. Menasha’s

housing stock varies widely in style, age, and value. Much of the City’s housing was built before 1950.

The median age of a home in Menasha is 1966. In fact, compared to our neighbors Menasha has the

second oldest housing stock. The City of Oshkosh had the oldest housing stock in the comparable City’s.

When comparing median housing value the City of Menasha also trends lower. Menasha’s median home

value is $118,400, the second lowest in the study group. Oshkosh has the lowest median, $116,900,

home value and De Pere has the highest, $167,400, in the study group.

The final metric gathered was rental percentage. Menasha’s rental percentage has remained fairly

steady since 2000 and the non-owner occupied ratio is not out of line with similar communities.

Menasha’s current rental rate is 38.5%. De Pere, Menasha, Ashwaubenon, and Oshkosh all have a rental

rate right around 40%. Appleton, Neenah, and Kaukauna have a rental rate around 33%. The State of

Wisconsin’s rental rate as a whole is 33%. A mix of homeowner and tenant occupied units is considered

healthy for a city. A rental rate of 35% is considered to be a healthy ratio for a city. While Menasha does

not have an inordinate number of tenant occupied units, it does have a significant concentration of

rental units in certain areas. Both the downtown and the north central part of the city have higher than

average rates.

The north central block group has an elevated rental

rate because a number of apartment complexes are

in this area. These apartment complexes artificially

elevate the regions rental rate. The second area with

an elevated rental rate is the downtown. This region

is split between three different block groups. The

rental rate in the downtown is the highest in the City

at 78%. While the city overall has only a slightly

elevated rental rate, these key areas of majority

tenant occupied units need to be addressed.

020000400006000080000

100000120000140000160000180000

Median Home Value

195019551960196519701975198019851990

Median Year Home Built

0.05.0

10.015.020.025.030.035.040.045.050.0

Percent Housing Stock Rental Occupied

14 | P a g e APPENDIX A

These issues must be addressed. Home quality

must be increased and rental rates in the center

city must be reduced. Menasha may have older

homes with lower home values but with proper

investment by the City, these homes can be fixed

up and become a healthy vibrant part of our

community and Menasha will become a place

every wants to live.

0.0

10.0

20.0

30.0

40.0

50.0

City of Menasha Rental Percent Since 2000

Menasha

Wisconsin

15 | P a g e APPENDIX B

APPENDIX B

The City’s housing programs are primarily aimed at renovated existing homes. These homes have a

character that is unique and should be preserved and enhanced when at all possible. When a structure

is renovated, with the use of City of Menasha funds, the purpose of the renovation is not to make an old

house new but to improve or repair the existing features. The original home’s design, structure, and

style should be maintained when at all possible. The following is a design guideline to ensure that the

aesthetics of existing homes are not lost with renovation projects.

A. Siding:

When existing wood siding exists it is preferred that the existing siding is maintained

opposed to replacing it with new siding.

New siding shall be applied in a manner that preserves all existing distinguishing

architectural features and ornamentation.

Width of new siding is consistent with the type, age and style of the house.

B. Brick and other Exterior Masonry:

When at all possible, all existing exterior masonry will be preserved and repaired. Only

in cases of irreparable damage can the exterior masonry be removed.

New masonry shall be applied in a manner that preserves all existing distinguishing

architectural features and ornamentation.

C. Porches:

Existing porches will be maintained and repaired. In no case should a salvageable porch

be removed.

Existing front porches will be maintained and repaired to original appearance and

condition. Salvageable front porches will not be removed.

D. Windows and Doors:

The style and design of any new window or door should match the original.

The removal of a window or door shall not be permitted unless the removal of the

window or door is vital to the completion of the project.

The replacement of windows shall not destroy any distinguishing features or

architectural ornamentation.

A new window or door may not be smaller than the existing window or door.

E. Outbuildings:

Any outbuilding, shed, garage or other structure will conform in style and color to the

principal structure on the lot.

Documents

Strong Neighborhoods Menasha · Major Renovation Program The Major Renovation Program will help eligible homes increase their value and assist with needed upgrades. The program provides